Monday, June 6, 2011 at 9:07AM Vol. 24, No. 2 | June 6, 2011 | Go to Charts
by Carl Janssens, ASA | Aircraft Bluebook — Price Digest
News networks these days have few positive perceptions when reporting on the U.S. economic recovery. Stories cite home foreclosures, a lack of jobs and the price of gas as prospective signs of a weak economy.
While doubts persist about the United States in an economic recovery, the business aviation sector is not following suit. For instance, late-model, large-cabin, long-range aircraft are selling at or above values published in the Aircraft Bluebook.
While North American business aircraft transactions have been lackluster, increasing sales on other continents are supporting the overall business aircraft market. Whatever the reason, inventories for late-model aircraft for sale continue to shrink. This can be interpreted as an indication of values held in check.
New aircraft models designed and equipped with the latest technology are breathing new life into the industry. Legacy aircraft, on the other hand, will never experience an economic comeback. Darwin’s “survival of the fittest” affects business aircraft, too.
While the U.S. economy still struggles to make a better comeback, business aviation has wheels in the well for the long haul.
Bluebook-at-a-glance
Increased — 41
Decreased — 298
Stable — 583
Lear 35s are now being reported with MSP, and values trended upward due to the reported equipped price in Bluebook. Late-model Bombardier Global XRSes gained value by $1 million when compared to the previous quarter.
Bluebook-at-a-glance
Increased — 1
Decreased — 93
Stable — 511
Like the rest of the industry, turboprops continued to demonstrate some good signs of stability. Payload, range and cost of operation will be key factors to watch. As competition for commodities becomes more aggressive on a global level, bringing new services to remote regions of the world will also play a role in continued stability in this market segment.
Bluebook-at-a-glance
Increased — 10
Decreased — 32
Stable — 616
Bluebook-at-a-glance
Increased — 148
Decreased — 335
Stable — 2056
The multi and single markets are some of the best indicators of stability. A majority of these aircraft are represented by personal acquisition. Buyers and sellers agree on price, and financial institutions fund these transactions.
Bluebook-at-a-glance
Increased — 69
Decreased — 122
Stable — 865
The Robinson R44 and R22 gained slightly in value when compared to the previous quarter. The majority of models remained stable for another quarter.
Please contact Aircraft Bluebook if you have any specific concern in a particular aircraft market. We will be happy to share with you the most up-to-date information available for your market segment. Call us toll-free at 877-531-1450 or direct at 913-967-1913.
Wednesday, May 26, 2010 at 9:22AM by Carl Janssens, ASA | Aircraft Bluebook — Price Digest
Finally, the pre-owned aircraft market moved in a positive direction in the first quarter of 2010. Late-model, large-cabin, long-range aircraft were selling at or better than values published in the Aircraft Bluebook.
External factors such as increased sales, a slight decline of available inventory and world market competition could all be considered causes for the improvement. Although this early indication of a slow recovery is in progress, it is too early to celebrate. Any positive sign going forward is far better than where the used aircraft market has been.
With the exception of the late-model, large-cabin class, most of the other business aircraft are not yet recovering in value. The good news is that values are showing more stability. Market activity is on the rise leaving a more optimistic perception that values are not exposed to the risks experienced in the last twenty months.
A couple considerations might be affecting values in the pre-owned aircraft market. The first is available credit for qualified buyers, and the second is the price of fuel. Part of the dilemma that played a major role in an injured economy was the lack of finance. Now, aircraft lenders are able to enable more transactions. This new reality will move the aircraft market into better days. At the same time, credit could indicate how aircraft values will rebound as elements of risks financial institutions are willing to take will have an indirect impact on value. Energy and the price of crude oil is the other factor that will impact further recovery. As long as there are no surprising jumps in the price of crude oil in a limited time frame, the aircraft market will be able to absorb the daily fluctuations in oil prices and prevent the cost of fuel from becoming a deterrent in this industry’s recovery.
Bluebook-at-a-glance
Increased — 5
Decreased — 410
Stable — 462
As reported above, late-model, large-cabin aircraft are retaining value. Select Gulfstream G550s were up $1 million with the remainder of these aircraft holding steady in value. The Gulfstream G-V market remained unchanged. The G-IV values were off an average of $500,000. Bombardier Global Express and the Global 5000 also held steady while inventories for sale decreased. The Bombardier Lear 45 series was off $200,000 on average. The Cessna Citation Excel series was down an average of $200,000 as well. Light jets such as the Beech Premier were off an average of $200,000. The Hawker 400 was down $100,000. The Citation 525 was off slightly as well.
Bluebook-at-a-glance
Increased — 55
Decreased — 86
Stable — 452
The ag market values improved slightly when compared to the previous quarter. Late-model Beechcraft King Airs remained stable. Earlier models generally also held on, though some models trended downward. Reduction in production for the King Air series might have some positive benefits. In time, limited production could cause limited inventories for sale in the pre-owned market, which would then cause values to strengthen. The Cessna Conquest was stable for yet another quarter. The Piper Meriden was down $50,000.
Bluebook-at-a-glance
Increased — 29
Decreased — 103
Stable — 523
The Beech Baron family of piston twins achieved some slight gains in value. Early-model 58s were up slightly. Select Baron 55 models also experienced narrow gains. For the most part, however, decreases in value were slight but across the board. Cessna 310 values were down, and the Diamond Twin Star was off $10,000.
Bluebook-at-a-glance
Increased — 311
Decreased — 267
Stable — 1909
Select ag planes generally made slight gains. Values of early-model Beech Bonanza A36s were up from the previous quarter. Late-model Cessna 172 Skyhawks and Cessna 206s reported slightly higher values for the summer release of Aircraft Bluebook. Commanders and Mooneys were generally off $5,000 to $10,000 when compared to the previous quarter. The majority of aircraft in this reporting segment remained stable.
Bluebook-at-a-glance
Increased — 52
Decreased — 170
Stable — 809
The Enstrom F28/280 series improved slightly from the previous quarter. Compared to the previous quarter, select models of the Eurocopter Twin Star were off $100,000. The Bell 430 also declined an average of $300,000 from previous reported values. The Enstrom 480 was down $50,000. The helicopter segment remained stable for the most part.
Please contact Aircraft Bluebook if you have any specific concern in a particular aircraft market. We will be happy to share with you the most up-to-date information available for your market segment. Call us toll-free at 877-531-1450 or direct at 913-967-1913.